problem 5

xc,b]=log(c)+log(i). constant returs to scale production function, Y=AH, where A is total factor ptoductivity wage atd II is profts. 2 (ii) Obtain the Labor stepply rurw of the housechold. (b) Obtaia sbe labor desorad curre of the fircut. (c) Obtaia the equilition bat i=H ast wage W. (d) What happens to centuitibrium labso if are increase the walue of A ? (c) What happens to the equilibrizm wape if we irctease the whic of A "? Problem 5 trudget cusshaint is G=iW, where G is gonernmedu spencling. (a) Obtain the labor stiply curo of the housorinald (b) Obtaia che labor denciand curse of the firm. (c) Obtaia the eqqeilitriuse labor h=H and wage W. (d) What huppens to opuilibrium labor if we increase the value of C ? (e) What happess to the equilibrium rage if we inccese the value of G ? paid are Tec. The budgot constraint is cWb+Tsc which can rewritten as xc,b]=log(c)+log(i). constant returs to scale production function, Y=AH, where A is total factor ptoductivity wage atd II is profts. 2 (ii) Obtain the Labor stepply rurw of the housechold. (b) Obtaia sbe labor desorad curre of the fircut. (c) Obtaia the equilition bat i=H ast wage W. (d) What happens to centuitibrium labso if are increase the walue of A ? (c) What happens to the equilibrizm wape if we irctease the whic of A "? Problem 5 trudget cusshaint is G=iW, where G is gonernmedu spencling. (a) Obtain the labor stiply curo of the housorinald (b) Obtaia che labor denciand curse of the firm. (c) Obtaia the eqqeilitriuse labor h=H and wage W. (d) What huppens to opuilibrium labor if we increase the value of C ? (e) What happess to the equilibrium rage if we inccese the value of G ? paid are Tec. The budgot constraint is cWb+Tsc which can rewritten as